Life Insurance Protects Your Family
Are you the main money-earner in your family? If so, could your family survive in the event of your death? Most families would answer no to that question. That’s why it’s important to make sure you have life insurance. Life insurance provides money to your beneficiaries in the event of your death.
Life insurance policies are for anyone who has dependents. Dependents could be a wife, husband, children or other loved one. A person who has children depending on them should definitely get life insurance. You might not want to think about your death, but it is an inevitable part of life.
A person without a family can use this insurance as well. The funds can pay for funeral expenses, and in some cases, provide an investment tool.
Insurance policies pay off in the case of the death of the person named on the policy. The policyholder isn’t necessarily the person named on the policy. For example, a parent can get a life insurance policy for a child. When the person dies, the insurance company gives them a lump sum to pay for expenses. Insurance policies can also be routed through a bank in order to pay off a mortgage automatically.
Some policies can be used as a form of investment. The policyholder can borrow money from the account, if it’s an interest baring type of policy. Policies may be traded for annuities in cases of emergency that do not involve death.
The main benefit of life insurance is you know your family can survive without you. The policy will benefit the entire family, and give them a way to get back on their feet. When the policy has cash value that can be used while the policyholder is alive, that’s a benefit as well. Money can be withdrawn from the account for things such as business, a home expansion or education.